Suzlon Energy share price jumped nearly 5% on Monday, 12 October, after Motilal Oswal Financial Services reiterated its ‘Buy’ rating on the stock, with a target price of ₹65, implying an upside potential of around 73% from its current market price of ₹38. The brokerage expects earnings momentum to strengthen in the second half of FY27, supported by a strong order book, higher deliveries and rising wind power installations in India.
In its latest report, Motilal Oswal said Suzlon Energy's stock has corrected 31% over the past three months and is currently trading at 17.5 times its estimated FY28 earnings. This represents a 20% discount to its one-year forward price-to-earnings average of 22 times at minus one standard deviation, making the valuation attractive, according to the brokerage.
Motilal Oswal has retained its ‘Buy’ rating on Suzlon Energy with a target price of ₹65, based on 30 times its estimated FY28 earnings per share (EPS). The valuation multiple is slightly above the company's historical average two-year forward price-to-earnings ratio of 27 times.
The brokerage expects Suzlon's earnings to improve in the second half of FY27, as the wind energy business typically generates 60–65% of its annual EBITDA during the second half. It estimates deliveries will rise to 2.1 GW in the second half, up from 1.2 GW in the first half.
For FY27, Motilal Oswal projects total deliveries of 3.3 GW, representing 35% year-on-year growth, followed by 3.8 GW in FY28. The brokerage expects EBITDA to grow at a compound annual growth rate (CAGR) of 22% between FY26 and FY28, supported by improving execution and delivery visibility.